PROJECT

Projects

Summary of Proposed Investment

Project Number

7753

Company Name

Compagnie de Distribution des Produits Alimentaires

Date SPI Disclosed

Oct 17, 1996

Country

Mauritania

Industry

Agribusiness and Forestry

Status

Completed

Sector

Poultry Farming

Department

Regional Industry - MAS Africa

Environmental Category

B - Limited

Previous Events

Approved : Dec 20, 1996
Signed : Mar 14, 1997
Invested : May 21, 1998

Project Description

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SUMMARY OF PROJECT INFORMATION (SPI)


Project Name Mauritania--CODIPAL S.A.

Region Western Africa

Sector Food & Agribusiness

Project No 07753

Projected Board November 29, 1996

Company Name COMPAGNIE DE DISTRIBUTION DES PRODUITS
ALIMENTAIRES (CODIPAL S.A.)

Technical Partner and/or Major Shareholders: Mr. Hademine Ould Abderrahmane is the major shareholder (90%) and his brother, Mr. Abderrahmane Ould Abderrahmane owns the remaining 10%. Mr. Hedemine is also the main sponsor of a group of five diversified companies engaged in general trading, foreign exchange dealing and maritime activities.

Project Cost Including proposed IFC investment: Total project cost is estimated at US$1.59 million equivalent and IFC has been asked to provide a venture loan of US$465,000 equivalent representing 29% of the project cost.

Location of project and Description of site: The project is located in the greater Nouakchott area. There are three farms: Toujounine (broilers), PK12 (layers) and Ten-soueilem (broilers). The modern selling point of processed chickens in cold storage facilities is located in MEDINA III, Nouakchott.

Description of Company and purpose of Project (includes IFC role/development impact). CODIPAL intends to remain the poultry industry leader in Mauritania and now needs to expand and integrate its production capacity to meet the growing local demand for chicken products and to reduce its over-reliance on imports.

Project development effects: the project will be the largest chicken products and food distributor in Mauritania and able to compete with European exporters. Its products will be competitively priced and produced under hygienic conditions. Furthermore, the construction of a feedmill which will use local ingredients, will lead to increased production of rice and maize in Mauritania.

IFC’s role: IFC’s support of CODIPAL will give credibility to a 100% locally owned company vis-a-vis the financial community. It is expected to have a strong catalytic effect. In particular,
it should encourage commercial banks, to provide support in financing the company’s working capital needs and also become co-investors.

Environmental Category and Issues: This is an environmental review Category B project. Key environmental issues that are of potential concern include disposal of solid waste, slaughterhouse hygiene, eventual fire outbreak and employee safety. Wastes from poultry farm are all biodegradable and easily recycled. Chicken runs will be used as natural fertilizers by CODIPAL, would be evacuated on daily and sold to vegetable growers. The sponsors have submitted an environmental management plan addressing the issues listed above.

The Environmental Review Summary is expected to be available on or about October 31, 1996 from the Public Information Center.

Date SPI sent to PIC: October 16, 1996

For Additional Information contact: Corporate Relations Unit -
Telephone: (202) 473-7711
Facsimile: (202) 676-0365

Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).

Sponsor / Cost / Location